Federal Register / Vol. 88, No. 224 / Wednesday, November 22, 2023 / Notices 81405 

1Wabash Valley Power Ass’n, Inc., 178 FERC 

¶ 63,005 (2022). 

2Timpont Rural Electric Member Cooperative, 

Complaint, Docket No. EL19–2–000, at 1–2 (filed 

Oct. 1, 2018) (Complaint). 

3Tipmont Rural Elec. Member Coop. v. Wabash 

Valley Power Ass’n, Inc., 171 FERC ¶ 61,059 (2020). 

4Wabash Valley Power Ass’n, Inc., 171 FERC 

¶ 61,053 (2020). 

5As participants in the hearing proceeding, Trial 

Staff and United Power, Inc. may submit reply 

briefs. This Commission, however, is generally less 

likely to allow new participants to intervene after 

issuance of a merits order. See, e.g., Conn. Yankee 

Atomic Power Co., 92 FERC ¶ 61,269, at 61,899 

(2000) (denying the subsidiaries of the Northeast 

Utilities system’s (NU) out-of-time motion to 

intervene because ‘‘[t]o permit NU’s late 

intervention after the issuance of the Initial 

Decision . . . would result in undue burden on the 

active parties to the hearing.’’). 

6See supra note 5. 

7See e.g., Ex. TIP–0003 at 3 (‘‘It is understood by 

and between the Parties that the express intent of 

Wabash Valley is to not own, operate or maintain 

any transmission facilities and/or substations 

except as such ownership, operation and 

maintenance may inure to Wabash Valley by reason 

of Transmission Participation Agreements and 

Transmission, Operation and Maintenance 

Agreements with other suppliers which own and 

operate bulk transmission systems.’’). 

8See supra n.7. 

also provides access to the texts of all 

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esubscription.asp. 

Intervention Deadline: 5:00 p.m. 

Eastern Time on December 7, 2023. 

Dated: November 16, 2023. 

Debbie-Anne A. Reese, 

Deputy Secretary. 

[FR Doc. 2023–25824 Filed 11–21–23; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

[Docket No. ER20–1041–003] 

Wabash Valley Power Association, 

Inc.; Order Establishing Additional 

Briefing Procedures 

Before Commissioners: Willie L. 

Phillips, Acting Chairman; James P. 

Danly, Allison Clements, and Mark C. 

Christie. 

1. This order establishes additional 

briefing procedures following the 

issuance of an Initial Decision on 

January 28, 2022,1 involving Wabash 

Valley Power Association’s (Wabash) 

proposed, unexecuted agreement for 

early termination of two wholesale 

power supply contracts between 

Wabash (as seller) and Tipmont Rural 

Electric Membership Cooperative 

(Tipmont) (as buyer). In this order, we 

establish a briefing schedule to develop 

a more comprehensive record on which 

to make a determination, as discussed 

below. 

I. Background 

2. This proceeding concerns 

Tipmont’s desired early termination of 

its membership with Wabash and two of 

its contracts that are on file with the 

Commission: the 1977 Contract that 

governs all-requirements service from 

1977 through until 2028, and the 2006 

Contract that governs such service from 

2006 through 2050 (each a Contract, and 

collectively, Contracts). At issue also in 

this proceeding is an unexecuted 2020 

Agreement For Early Termination of 

Wholesale Power Supply Contracts 

(Termination Agreement). 

3. On October 1, 2018, Tipmont filed 

a complaint (Complaint) against Wabash 

requesting that the Commission: (1) find 

that Tipmont may terminate its 

Contracts early, and (2) initiate a 

proceeding to establish the just and 

reasonable level of stranded costs 

resulting from Tipmont’s early 

departure.2 On February 20, 2020, 

Wabash filed the Termination 

Agreement pursuant to section 205 of 

the Federal Power Act. On April 20, 

2020, the Commission concurrently: (1) 

issued an order granting, denying, and 

dismissing various aspects of the 

Complaint; 3 and (2) issued an order 

accepting and suspending Wabash’s 

proposed Termination Agreement and 

established hearing and settlement 

judge procedures.4

4. On July 30, 2020, after the 

Settlement Judge declared an impasse, 

the Chief Judge issued an order 

terminating settlement judge procedures 

and designated Administrative Law 

Judge Andrea McBarnette as the 

Presiding Judge. The hearing 

commenced on May 20, 2021, and 

concluded on June 8, 2021. The 

Presiding Judge issued the Initial 

Decision on January 28, 2022. 

Subsequently, the participants filed 

Briefs on Exceptions and Briefs 

Opposing Exceptions on March 31, 

2022, and April 20, 2022, respectively. 

II. Discussion 

5. We establish a briefing schedule to 

allow the participants to address the 

issues set forth in Appendices A and B. 

Further briefing on these issues will 

help develop a more comprehensive 

record for the Commission to evaluate 

the justness and reasonableness of the 

Termination Agreement. Accordingly, 

we provide questions directed at 

Wabash in Appendix A and one 

question directed at Tipmont in 

Appendix B. Wabash and Tipmont are 

required to submit initial briefs within 

45 days of the date of this order. At the 

initial briefing stage, Wabash may 

address only questions in Appendix A 

of this order, and Tipmont may address 

only the question in Appendix B of this 

order. Further, participants are 

permitted to file reply briefs within 30 

days of the date of filing of initial 

briefs.5 At the reply briefing stage, 

participants may address questions 

directed at the other party. Briefs 

making any factual assertions must be 

accompanied by a sworn affidavit of one 

or more witnesses. 

The Commission orders: 

(A) Wabash and Tipmont are hereby 

required to submit initial briefs within 

45 days of the date of this order, as 

discussed in the body of this order. 

(B) Participants are hereby permitted 

to file reply briefs within 30 days of the 

date of filing of initial briefs.6

(C) The Secretary is hereby directed to 

publish this order in the Federal 

Register. 

By the Commission. 

Issued: November 16, 2023. 

Debbie-Anne A. Reese, 

Deputy Secretary. 

Appendix A 

Questions Directed at Wabash 

A. Transmission 

1. Section 3 of the 1977 Contract and 

section 5 of the 2006 Contract allow Wabash 

to own transmission in limited 

circumstances.7

a. For each transmission asset reflected in 

the Black & Veatch Study, please identify the 

agreements (i.e., Transmission Participation 

Agreements and Transmission, Operation 

and Maintenance Agreements) 8 that allow(s) 

Wabash to own said transmission assets and 

explain in each instance how such 

ownership right is consistent with the 

exception criteria in the Contracts. 

b. For each of the agreements identified in 

response to part a., please state the 

corresponding amounts of transmission plant 

and transmission capital expenditure 

balances reflected in the Black & Veatch 

Study for years 2019–2021. 

c. In addition, please identify any 

transmission assets that were excluded from 

the proposed buyout amount due to 

limitations set forth in the Contracts. 


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81406 Federal Register / Vol. 88, No. 224 / Wednesday, November 22, 2023 / Notices 

9Ex. TIP–0097; Ex. TIP–0113 at ‘Depreciation’ 

tab, cell C28. 

10Wabash, FERC Form No. 1/3–Q, Rev. 02–04, at 

207 (Electric Plant in Service (Account 101, 102, 

103, and 106, line 58(g)) (2019). 

11Ex. TIP–0097; Ex. TIP–0113 at ‘Depreciation’ 

tab, cell D28. 

12Ex. TIP–0016 at ‘BL Pg 20 Cost of Trans’ tab, 

cell I44. 

13Ex. WV–0035 at 35. 

14Ex. TIP–0097; Ex. TIP–0113 at ‘Depreciation’ 

tab, cell C7. 

15Wabash, FERC Form No. 1/3–Q, Rev. 02–04, at 

206 (Electric Plant in Service (Account 101, 102, 

103, and 106, line 58(c)) (2019). 

16Ex. WV–0035 at 36 (citing Ex. WV–0049). 

17Ex. TIP–0097; Ex. TIP–0113 at ‘Depreciation’ 

tab, cell D7. 

18Wabash, FERC Form No. 1/3–Q, Rev. 02–04, at 

206 (Electric Plant in Service (Account 101, 102, 

103, and 106, line 58(c)) (2020). 

19Ex. WV–0035 at 36 (citing Ex. WV–0049). 

20 Id. at 44–45. 

21Ex. WV–0014 at 15 (‘‘For the years 2020 

through 2025, Black & Veatch increased the 

capacity prices from the recent capacity price level 

of $22.34/MW-day observed in the MISO market.’’). 

22 Id. at 30. 

23 Id. at 15, 30. 

24 Id. at 15. 

25 Id. 

26Wabash Br. Opposing Exceptions 13–14. 

27Tipmont Br. Opposing Exceptions 2. 

28 Id. at 1 (citing Ex. TIP–0001 at 25). 

29Tipmont Br. on Exceptions 13. 

30 Id. 

31Ex. TIP–0097; Ex. TIP–0113 at ‘Prop Ins’ tab, 

cell E14. 

32Wabash, FERC Form No. 1/3–Q, Rev. 02–04, at 

323 (Electric Operation and Maintenance Expenses 

(line 185(d)) (2019). 

33Ex. WV–0035 (citing Ex. TIP–0082). 

34Trial Staff Initial Br. 40 (citing Tr. 528:23– 

529:22, 531:4–22). 

2. Wabash’s transmission plant in service 

balance for year 2019 is $354.9 million in the 

Black & Veatch Study 9 and $312.8 million in 

Wabash’s annual FERC Form No. 1 filing.10

Please explain the divergence between these 

two values. Wabash’s transmission plant in 

service balance for year 2020 is $423.1 

million in the Black & Veatch Study 11 and 

$321.2 million in Wabash’s 2020 budget 

study.12 In addition, Wabash states that this 

value is $348.9 million in the Adjusted Black 

& Veatch Study.13

a. Please explain why Wabash’s 

transmission plant in service balance for year 

2020 decreased by $74.2 million between the 

original and Adjusted Black & Veatch 

studies. 

b. Please explain the $27.7 million 

divergence between Wabash’s transmission 

plant in service balance for year 2020 in the 

Adjusted Black & Veatch Study and Wabash’s 

2020 budget study. 

c. Please provide updated versions of the 

spreadsheets contained in Ex. TIP–0097 and 

Ex. TIP–0113 that reflect the updated 

transmission plant in service balance for year 

2020, and all other modified values, used in 

the Adjusted Black & Veatch Study. 

3. Wabash’s annual transmission capital 

expenditure for year 2019 is $50.6 million in 

the Black & Veatch Study,14 $41.9 million in 

Wabash’s annual FERC Form No. 1 filing,15

and $42.2 million according to Wabash’s 

work orders.16 Please explain the divergence 

among these values. 

4. Wabash’s annual transmission capital 

expenditure for year 2020 is $71.8 million in 

the Black & Veatch Study,17 $41.6 million in 

Wabash’s annual FERC Form No. 1 filing,18

and $66.5 million according to Wabash’s 

work orders.19 Please explain the divergence 

among these values. 

5. Please explain the transmission service 

that Wabash takes under the MISO Tariff in 

association with delivery to Tipmont. 

6. Wabash states that the original and 

Adjusted Black & Veatch studies ‘‘make no 

adjustment to Wabash Valley’s forecasted 

transmission revenues.’’ 20

a. Please explain how Wabash estimated 

the annual transmission revenues it would 

receive if Tipmont remained a member of 

Wabash and describe the source(s) of those 

revenues. Describe all assumptions and 

provide supporting workpapers. 

b. In addition, please describe how these 

revenues compare to what Wabash would 

receive if Tipmont departs and procures 

network service for its entire load. 

B. Capacity Price Forecast 

7. Please identify the source of the $22.34/ 

MW-day initial value used in forecasting the 

Black & Veatch Study’s capacity price for 

years 2020–2025.21

8. Please explain how the Black & Veatch 

Study determined the annual growth rate for 

its forecasted capacity prices for years 2021– 

2025.22

9. Please explain why the Black & Veatch 

Study switches from using the recent 

capacity price level observed in the MISO 

market as a starting point for the capacity 

price forecast for years 2020–2025 to using 

weighted average solar power purchase 

agreement costs beginning in year 2026 

specifically.23

C. Energy Price Forecast 

10. Please explain how the Black & Veatch 

Study selects the New York Mercantile 

Exchange Henry Hub forward price curve 

dated October 2, 2019, as the basis for the 

projected natural gas prices used in years 

2021–2031 of its energy price forecast.24 In 

addition, please explain why the Black & 

Veatch Study uses a single forward curve 

instead of averaging over multiple forward 

curves. 

11. Please explain why the Black & Veatch 

Study assumes that the five-year compound 

annual growth rate implied in the natural gas 

forward prices for 2027–2031 will persist 

through 2050.25

D. Miscellaneous Issues 

12. Wabash proposes a 10-year buyout 

period, arguing that for any termination 

initiated prior to April 14, 2028, Tipmont 

agreed to a ten-year notice and buyout period 

during which Tipmont remains a member, 

continues to purchase all-requirements 

service, and makes additional monthly 

escrow payments based on the rate set by the 

Wabash board of directors.26 In contrast, 

Tipmont argues that the 10-year buyout 

period has not been found to be just and 

reasonable; that, as long as Tipmont pays the 

verifiable stranded costs associated with 

Tipmont’s exit,27 Wabash and its members 

are protected from any financial impacts 

associated with such exit, whether Tipmont 

leaves immediately or in 10 years; and that 

Tipmont’s continued membership in Wabash 

is causing harm to Tipmont.28 Tipmont 

requests that the Commission direct Wabash 

to make a compliance filing that sets the date 

of Tipmont’s exit as ‘‘the first day of the 

month one year after the date of that 

Commission order.’’ 29

Please address the manner in which an 

immediate buyout scenario should be 

effectuated in the event the Commission 

finds the 10-year buyout period is not 

required by the parties’ contracts and 

otherwise has not been shown to be just and 

reasonable.30

13. Wabash’s property insurance costs for 

year 2019 are $1.5 million in the Black & 

Veatch Study 31 and $169,871 in Wabash’s 

annual FERC Form No. 1 filing.32 Please 

explain the divergence between these values. 

14. Wabash’s property tax costs for 

year 2019 are $5.57 million in the Black 

& Veatch Study and $5.37 million in 

Wabash’s Trial Balance workpaper.33

Please explain the divergence between 

these values. 

Appendix B 

Question Directed at Tipmont 

15. According to Trial Staff, the London 

Economics International (LEI) Study’s energy 

price forecast projects an approximate $3/ 

MMBtu seasonal spread in intra-year natural 

gas prices beginning in 2030.34 Please 

explain how the seasonal natural gas price 

spreads observed in the LEI Study’s energy 

price forecast are consistent with current and 

expected natural gas market dynamics in 

MISO. 

[FR Doc. 2023–25823 Filed 11–21–23; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

[Docket No. CP24–12–000] 

Transcontinental Gas Pipe Line 

Company, LLC; Notice of Application 

and Establishing Intervention Deadline 

Take notice that on November 2, 

2023, Transcontinental Gas Pipe Line 

Company, LLC (Transco), P.O. Box 

1396, Houston, Texas 77251, filed an 

application under section 7b of the 

Natural Gas Act (NGA), and part 157 of 

the Commission’s regulations requesting 

authorization for its Ship Shoal 246 to 

Ship Shoal 242 Abandonment Project 

(Project). The Project consists of Transco 

abandoning offshore laterals extending 

from Ship Shoal Block 246 Platform A 

to the Ship Shoal Block 242 underwater 

platform, and auxiliary facilities, 


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